HNI subscription is very poor. Two IPO failed miserably last month UTIAMC and Angel due to less than 1X subscription. If HNI below 5 times, no chances of listing above 30.
304. P M| Link| Bookmark|
October 21, 2020 3:44:04 PM
(1100+ Posts, 1100+ Likes)
What I understand is - If a listed company (called as Parent company) has more than 2 verticals / subsidiaries and it decides to list one of its verticals as separate entity, then the company goes for Spin off or De-merger. In most of the cases, Parent's company stock price reduces appropriately based on valuations. Shareholders of parent company get the shares on subsidiary company based on the ratio of spin off decided by parent company. The subsidiary company is then listed separately. Few examples that I have seen in recent years Orient Electric demerged from Orient Paper Solara Active Pharma from Strides Suven Pharma from Suven Life Sciences Aarti Surfactants from Aarti Industries
Gland Pharma gets Sebi approval for Rs 6,000 crore IPO, set for first listing of an Indian firm with a Chinese parent The IPO is a mixture of primary and secondary issue of shares with both China’s Fosun group and the founders of Gland Pharma due to dilute shares. Gland Pharma may look to launch the IPO in November 2020.
Experts may kindly give estimate of oversubscription in NII and QIB categories (final oversubscription at the close of IPO)
298.1. Paymzia| Link| Bookmark|
October 21, 2020 7:57:12 PM
IPO Guru (2700+ Posts, 4700+ Likes)
We need not to apply ever upo, just simply avoid , Even you want a apply just look at tomorrow (last day). QIPB, NII category then decide. As of now GMP is below 1
Thanks jtsm for reply i think about to apply one or two applications and take risk because fresh issue money's interest increases profit and eps of this company let's see what market give valuation of this small finance company thanks
@Sagar ji, I did not applied in Likhita and I am not regretting at all. Likhitha mein pure operator game chal raha hai.
There were only 17 lakh shares traded on listing day. Aap last one year ka track record dekh lo, koi bhi ipo mein listing day ko 10 crores to 200 crores shares trade hote hai.
QIBs are not idiots. They did not subscribed their portion size and LMs of LIKHITHA had to reduce QIB portion size from 50% to 1% to make this IPO successful. I am surprised why SEBI is silent on this kind of incident.
After all value investing naam ki bhi koi chiz hoti hai.
There were total 5,100,000 shares offered out of 1,785,000 were for retailers...
How much you are expecting to trade on listing day???
Why you are comparing likhitha with other mainline IPOs in terms of shares traded on listing day??
Likhitha all were good only issue was sector and it was going to list in T to T Group... QIB usually skip T to T Group issues irrespective of company is good or bad...
@Krishna24, I know it was a small issue. I respect your opinion but I beg to differ from it. For me, reducing the QIB portion size from 50% to 1% is not at all justified. Afterall, QIBs invest heavily in stock market and they play a role of Bulls in market. WIthout their backing, sustainable share price growth is not possible.
People were lucky that operators did not dump the shares on listing day. The stock like LIKHITHA is the most risky and that is why QIBs avoid this kind of issue.